As a precaution to the rising number of COVID-19 cases, the
AGM was held virtually via Zoom and afforded all stakeholders the same
participatory rights as with a physical meeting.
Dr. Kingsley Obiora, Group Chairman of the Board of Directors, FMDQ Group, ably represented by Mr. Jibril Aku, the Group Vice Chairman of the Board, presided over the AGM and as part of the ordinary business, presented the Audited Financial Statements for the year ended December 31, 2020, to shareholders, together with the Reports of the Directors and Auditors.
Recounting FMDQ’s journey in 2020, he acknowledged that “the year 2020 was understandably challenging, with the outbreak of the COVID-19 pandemic, and the attendant turbulence in the global and domestic economic landscapes”.
He further stated that despite the challenges, “2020 was a
landmark year for FMDQ, as it saw the Company’s reorganisation into a Group
structure, with FMDQ Group becoming a non-operating Holding Company registered
by the Securities and Exchange Commission (SEC), with three (3) SEC-registered
capital market subsidiaries.
These regulated subsidiaries include FMDQ Securities Exchange Limited (“FMDQ Exchange”), FMDQ Clear Limited (“FMDQ Clear”) and FMDQ Depository Limited (“FMDQ Depository”), all further consolidating our business model, transforming FMDQ to Africa’s first vertically integrated FMI group, and helping to de-risk the markets across the full capital market value chain, from pre-trade, trade to post-trade.”
Speaking further, he stated that two (2) new
subsidiaries, FMDQ Private Markets Limited and iQx Consult Limited, were
operationalised in 2020 to extend the opportunities in the capital market to
private companies, amongst others, and ensure operational efficiency and build
resilience in the FMDQ Entities through technology and digitisation,
respectively.
Speaking on the product and market development activities of
FMDQ’s capital markets subsidiaries, the Chairman stated that FMDQ Exchange’s
Securities Admission business saw eighty-two (82) securities, with a total
value of ₦2.07 trillion, admitted on its platform.
Furthermore, the Exchange activated its Equity Market
Development Project during the year, with relevant activities commencing in
earnest towards full operationalisation of the Market. Also, the FMDQ
Exchange-Traded Derivatives (ETD) Market Development Project, following
significant financial markets developments, such as the long-awaited
introduction of netting and other relevant laws in the Companies and Allied
Matters Act (CAMA), 2004, to include netting and other relevant provisions in
2020, has advanced towards the eventual launch of the FMDQ ETD Market, with the
planned introduction of pioneer fixed income products later in 2021.
Speaking on FMDQ Clear, the Chairman stated that the receipt
of an Approval-in-Principle from the SEC in September 2020 on its registration
as Nigeria’s foremost Central Counterparty (CCP), and a full registration from
the SEC in 2021, has effectively positioned FMDQ Clear for the actualisation of
the Company’s vision of becoming a globally accepted CCP by 2025.
FMDQ Depository was not left out of the mix, as it also
achieved considerable growth as evidenced in the admission of a total of
twenty-one (21) securities valued at circa ₦411.00 billion in 2020, driven by
the activation of its market penetration strategy for its securities-related
services, despite the downturn in the operating environment.
The Chief Executive Officer of FMDQ, Mr. Bola Onadele. Koko,
while speaking to the Group’s outlook for 2021 and beyond, stated that “FMDQ
Group will continue to work assiduously to deliver innovative and critical
market development initiatives, with the support of and in collaboration with its
stakeholders”.
Some of the initiatives market participants can look forward
to in the near-term include; the launch of FMDQ Exchange’s Fixed Income Futures
products, having received the SEC’s approval for the FMDQ Exchange Derivatives
Market Rules in February 2021, and the activation of the Repo market with
collateral management service; FMDQ Clear’s activation of CCP services for
financial market transactions (cash and derivatives) having received the SEC’s
approval for its Clearing Member Rules in April 2021; FMDQ Depository’s
extension of its services to new asset classes and customer segments, and
further digitisation of its Participants interfaces and services; and, the
activation of FMDQ Private Markets’ Startup Accelerator and Liquidity Ecosystem
(SCALE) product, supported by the Oxford Foundry, the entrepreneurial centre of
the University of Oxford, UK, which will extend much-needed opportunities to
market segments that are currently poorly served by capital providers and drive
an inclusive growth and development of the Nigerian economy.
Mr. Onadele concluded that “Despite the lingering effects of
the pandemic on the economy and the minimal recovery recorded thus far in 2021,
FMDQ Group assures its stakeholders of a renewed commitment to channel adequate
resources towards achieving the set objectives for the markets under its
purview, while continuing to work assiduously towards the swift activation of
robust and thriving Derivatives and Equity Markets, as well as consolidating
the Group’s Debt Markets leadership position”.
FMDQ Group is strategically positioned to provide
registration, listing, quotation & noting services; integrated trading,
clearing & central counterparty, settlement, risk management for financial
market transactions; and depository of securities; as well as data and
information services, across the debt capital, foreign exchange, derivatives
and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ
Clear, FMDQ Depository and FMDQ Private Markets – towards transforming the
Nigerian financial markets to become “GOLD” (Globally Competitive,
Operationally Excellent, Liquid and Diverse) in alignment with its global
counterparts.